Following a research report, Paul Conley feels its time for him to say something he has ‘hesitated to say’. “The B2B industry, as we know it, is about to collapse,” he writes.
The B2B publishing industry currently now dominated by giant print companies and smaller web-only companies is about to collapse, he continues.
When the dust settles, B2B journalism will still be here – but many of the companies that make up the industry will be gone, he predicts.
Employees’ retirement accounts are likely to be affected by Tribune Co.’s Chapter 11 bankruptcy filing, while ex-employees, who left the company in the past year, may be left as its creditors.
More on this tomorrow, but just to link today’s (Monday) news that the Tribune Co. has filed for Chapter 11 bankruptcy protection, as reported here by the group’s own newspaper the LA Times, as well as numerous other news sources. The group also owns KTLA Channel 5, the Chicago Tribune, the Baltimore Sun as well as nine other newspapers and 22 other television and radio stations across the country.
The group’s chief executive Sam Zell said in a statement (via CNNmoney.co.uk):
“Factors beyond our control have created a perfect storm – a precipitous decline in revenue and a tough economy coupled with a credit crisis that makes it extremely difficult to support our debt.”
“We believe that this restructuring will bring the level of our debt in line with current economic realities, and will take pressure off our operations.”
The groups says it is able to sustain operations while it restructures. Here, Editor & Publisher looks at concerns inside the newsroom.
Excerpts from Sam Zell’s memo can be read here.
A day that saw plenty of job cut announcements. Here’s the roundup for this evening and Journalism.co.uk will update tomorrow.
“The publisher has today entered into a consultation period with staff and said it envisaged 59 editorial jobs would be cut. It said it was committed to voluntary redundancies where possible.
“The bulk of the job losses will come in Liverpool, where the 175-strong editorial team will be cut to 132 and the Liverpool Daily Post will scrap its Saturday edition.”
“It is understood the cuts represent a 13-14 per cent saving to the editorial budget and will be brought into effect by Christmas at the latest,” reports MediaGuardian.